Securities and Commodities Violations

News about Securities and Commodities Violations, including commentary and archival articles published in The New York Times.

Chronology of Coverage

Oct. 31, 2016

Victims bilked by Wall Street trader Andrew Caspersen ask court to show leniency when sentencing; Judge Jed S Rakoff agrees to hear testimony from Yale University professor Dr Marc N Potenza, who asserts Caspersen's severe gambling is mental illness that caused him to compulsively trade until he lost all his clients' money; former PJT Partners employee had pleaded guilty to security and wire fraud charges in July and faces over 15 years in prison. MORE

Oct. 3, 2016

Texas businessman Sam Wyly agrees to pay $198.1 million, settling securities fraud case with SEC dating back to 2010; Wyly and his brother Charles were found guilty in 2014, ordered to pay over $300 million judgment to SEC in 2014 and then subsequently filed for bankruptcy protection; Sam Wyly is now in talks to resolve $1.11 billion tax claim by IRS. MORE

Sep. 30, 2016

Och-Ziff Capital Management settles its case with federal prosecutors and securities regulators, agreeing to pay $413 million fine as part of deferred-prosecution deal in connection with charges of bribing foreign officials; in addition, founder Daniel Och will pay $2.2 million to settle record-keeping violation with Securities and Exchange Commission. MORE

Aug. 25, 2016

Former Comverse Technology chief executive Jacob Alexander pleads guilty to securities fraud charges; had vanished in 2006 while being investigated for backdating stock options. MORE

Aug. 22, 2016

Indiana and Utah are two states so far that are using informants to improve enforcement of securities fraud statutes; whistle-blowers receive up to 10 percent of monetary sanctions received in enforcement action; North American Securities Administrators Assn is considering expanding program to other states. MORE

Jul. 24, 2016

Robert Frank Inside Wealth column examines fallout from out-of-control party that cost host Brett Barna his hedgefund manager job at Moore Capital; notes subsequent arrest of Omar Amanat--who rented out his Southampton home for event--by FBI for securities fraud sheds new light on Barna's accusations Amanat tried to extort money from him. MORE

Jun. 15, 2016

Lawyer for Andrew Caspersen argues in court that uncontrollable gambling addiction was root cause of risky bets he made on stock market, which resulted in federal charges of trying to defraud his friends, family and hedge fund foundation of almost $40 million. MORE

Jun. 8, 2016

French labor court rules former Societe Generale banker Jerome Kerviel was unjustifiably fired in 2008 and orders bank to pay him about 450,000 euros; ruling apparently stems from court's agreement with Kerviel that illegal trades he made were tacitly encouraged by his superiors at bank. MORE

May. 26, 2016

Commodity Futures Trading Commission announces $425 million in penalties against Citigroup, covering two cases; bank faces no criminal charges, however, as Justice Dept ends its probe over manipulation of interest rate. MORE

May. 19, 2016

Securities and Exchange Commission files criminal charges against sports bettor William T Walters and former investment banker Thomas C Davis, accusing them of insider trading; agency also lists golfer Phil Mickelson as relief defendant, arguing he was 'unjustly enriched' by relationship; case is one of most visible insider trading prosecutions since federal court overturned two notable convictions. MORE

May. 10, 2016

Businessmen Ariel Quiros and William Stenger are accused of largest fraud ever perpetrated in state of Vermont; pair raised $350 million through federal visa program that allows wealthy foreign citizens to invest in distressed areas in exchange for green cards and permanent residency; Securities and Exchange Commission civil complaint says Quiros and Stenger diverted more than $200 million of those funds, intended to finance economic development in town of Newport, into massive array of fraudulent accounts. MORE

Apr. 14, 2016

Paul Shechtman, lawyer for former PJT Partners executive Andrew Caspersen, says his client is unlikely to face trial on criminal charges of defrauding $40 million from friends, relatives and charitable foundation; anticipates settlement with regulators. MORE

Apr. 12, 2016

Securities and Exchange Commission files civil claims suit against Texas Atty Gen and Republican Ken Paxton for misleading investors in 2011 on behalf of technology company Servergy Inc; Paxton had already been indicted in 2015 on state securities fraud charges that occurred in 2014 while he was member of Texas House of Representatives. MORE

Apr. 6, 2016

Federal securities and wire fraud case against Andrew Caspersen has thrown lives of his family and friends into public spotlight; authorities say Caspersen's intimates were also victims in scheme to defraud investors of up to $95 million through money taken in from Moore Charitable Foundation and from clients at PJT Partners, where he worked. MORE

Apr. 4, 2016

Moore Capital Management managing director James McIntyre is confirmed to be person who invested and lost $400,000 in fraud scheme run by Andrew Caspersen. MORE

Mar. 30, 2016

Moore Charitable Foundation announces that it was victim of fraud scheme perpetrated by PJT Partners managing partner Andrew Caspersen that led to loss of $25 million. MORE

Mar. 29, 2016

Andrew Caspersen, Wall Street executive who worked for PJT Partners advisory group, is arrested for securities fraud and wire fraud of up to $95 million; authorities contend he used fraudulent investment vehicle and fake emails to dupe unidentified hedge fund foundation; case highlights issue of how much research and checking institutional investors actually do when making investment, and how much of it comes down to personal connection and trust. MORE

Mar. 24, 2016

British judge rules that futures trader Navinder Singh Sarao can be extradited to United States in order to face criminal charges for his role in 2010 flash trading crash; extradition will be reviewed before it is enacted. MORE

Mar. 22, 2016

Leon G Cooperman, chief executive of Omega Advisors hedge fund, tells investors in conference call that SEC is planning to bring enforcement action over violations related to 2010 Atlas Pipeline trade; also defends his firm's reputation, saying government investigation will have no impact. MORE

Mar. 11, 2016

Securities and Exchange Commission announces Westlands Water District in Central California, largest and most powerful agricultural water district in country, has agreed to pay $125,000 fine for hiding financial problems in 2010 from investors who subsequently bought $77 million of district's municipal bonds. MORE

Feb. 10, 2016

Securities and Exchange Commission announces Monsanto will pay penalties of $80 million to settle claims that it misstated earnings after failing to properly track millions of dollars in rebates it offered for its herbicide Roundup. MORE

Feb. 4, 2016

Martin Shkreli, according to his defense lawyer Benjamin Brafman, has been advised to keep low profile in court, on social media and with news media; Brafman says his client will assert his Fifth Amendment rights during scheduled testimony before House Committee on Oversight and Government Reform. MORE

Feb. 2, 2016

Feb. 1, 2016

Barclays and Credit Suisse will pay total of $154.3 million to settle accusations they misrepresented their private stock trading services, known as dark pools. MORE

Jan. 31, 2016

Gretchen Morgenson Fair Game column examines Goldman Sachs' settlement with Securities and Exchange Commission to illuminate misdeeds prevalent in lucrative Wall Street securities lending system; notes Goldman was accused of not conducting adequate reviews related to short selling, but charging customers for service nonetheless. MORE

Jan. 20, 2016

Legal team at Arnold & Porter, law firm that was representing former hedge fund manager Martin Shkreli in his securities fraud trial, files letter in federal court saying that Shkreli is in midst of retaining new team of lawyers. MORE

Jan. 8, 2016

Federal prosecutors say E-Trade brokerage account holding $45 million is used to secure $5 million bond posted by Turing Pharmaceuticals founder Martin Shkreli after his Dec 17 arrest on securities fraud charges. MORE

Dec. 30, 2015

KaloBios Pharmaceuticals, which fired chief executive Martin Shkreli after he was charged with securities fraud, says it has requested appeal of Nasdaq's decision to delist its shares. MORE

Dec. 29, 2015

KaloBios Pharmaceuticals says two directors have resigned after arrest of chief executive Martin Shkreli on securities fraud charges. MORE

Dec. 23, 2015

Pharmaceutical executive Martin Shkreli has repeatedly taken to Twitter since being arraigned on federal securities fraud charges to proclaim his innocence; is one of growing number of executives charged with crime or fraud that are using social media to defend themselves against advice of their lawyers. MORE

Dec. 22, 2015

Martin Shkreli, who was arrested on securities fraud charges involving his hedge funds, is ousted as chief executive of his second pharmaceutical company, KaloBios Pharmaceuticals; was previously removed as chief executive of Turin Pharmaceuticals. MORE

Dec. 19, 2015

Arrest of Turing Pharmaceuticals chief Martin Shkreli on charges of securities fraud has prompted debate over $1 million gift made by Shkreli to Hunter College High School, with some saying Upper East Side school should return money; Shkreli flunked out of Hunter, but credits lessons learned at school for his successes. MORE

Dec. 19, 2015

Op-Ed article by William D Cohan examines criminal case against Martin Shkreli, who has been charged with securities and wire fraud; notes business press had previously lionized Shkreli for his business strategies concerning prices of pharmaceuticals; suggests Shkreli's case raises question of whether Wall Street can ever be expected to restructure itself to prevent fraud and deception in first place. MORE

Dec. 19, 2015

Turing Pharmaceuticals says Martin Shkreli has resigned as chief executive after his arrest on securities fraud charges; Ron Tilles will be interim chief executive and remain chairman. MORE

Dec. 18, 2015

Federal Bureau of Investigation arrests Turing Pharmaceuticals head Martin Shkreli, who has been vilified for drug price-gouging, on securities fraud and wire fraud charges relating to his work at hedge fund MSMB Capital Management and biopharmaceutical company Retrophin; critics assert arrest is comeuppance for brash chief executive officer. MORE

Dec. 18, 2015

Federal authorities' indictment of Turing Pharmaceuticals chief executive Martin Shkreli on securities fraud charges portrays his small-time fraud in hiding losses in his hedge funds; contend his Ponzi-like scheme involved looting his former company Retrophin to pay back upset investors. MORE

Dec. 18, 2015

News Analysis; arrest of Turing Pharmaceuticals chief executive Martin Shkreli on securities fraud charges in some ways has taken heat off of other drug firms; most of them will redouble efforts to distance themselves from greedy executive, who is blamed for sparking outrage over drug prices. MORE

Dec. 17, 2015

Third Avenue Management reaches agreement with Securities and Exchange Commission over its action to stop investors in troubled junk bond fund from redeeming their money. MORE

Dec. 9, 2015

Federal appeals court overturns conviction of former Jefferies Group trader Jesse C Litvak, citing lack of evidence; Litvak was found guilty in 2014 of deceiving customers about prices of mortgage-backed securities. MORE

Nov. 25, 2015

DealBook Online; Securities and Exchange Commission says that Marwood Group agrees to pay $375,000 penalty over compliance failures and will establish new rules to to fix issues. MORE

Aug. 10, 2015

Securities and Exchange Commission faces mounting opposition on several fronts, as critics cite its lack of aggressive enforcement and several other shortcomings; agency has some high-profile insider trading cases in works that could redefine its regulatory role and help it regain momentum, but for now it remains on the defensive. MORE

Aug. 4, 2015

Texas Atty Gen Ken Paxton is arrested on felony count securities law violations; allegedly misled investors and clients while doing securities work in years before he became attorney general; is released after posting $35,000 in personal recognizance bonds. MORE

Aug. 4, 2015

Adam Liptak Sidebar column; 20 former Justice Dept officials file brief urging Supreme Court to hear appeal from George Georgiou, who was convicted in 2010 of securities fraud and related crimes; say prosecutors violated Constitution by failing to turn over crucial evidence. MORE

Aug. 2, 2015

Texas officials announce grand jury has indicted state's Republican Atty Gen Ken Paxton for securities fraud and failing to register with securities board in state in connection with his soliciting clients and investors for companies while he served in state's House of Representatives. MORE

Jul. 17, 2015

James B Stewart Common Sense column notes that white-collar lawyers are mystified by lack of civil or criminal charges against Bruno Iksil, so-called London Whale whose bad bets on derivative contracts cost JPMorgan Chase $6.2 billion in losses; contends that case shows just how difficult it is to prosecute traders. MORE